Fiscal Administration 9th Edition

Chapter One Questions and Exercises 1. a. Yes. Total project benefits (4,900) exceed total project cost (4,000). b. No. No individual has benefits greater than cost of project. c. No. Based on net benefits, A and B would vote yes; C, D, and E would vote no. d.

Chapter Ten Questions and Exercises 3. Alcoholic Beverages Tobacco Lowest 176/10,531 = 1.67% 259/10,531 = 2.46% Second 272/27,674 = 0.98 337/27,674 = 1.22 Third 413/46,213 = 0.89 381/46,213 = 0.82 Fourth 506/72,460 = 0.70 371/72,460 = 0.51 Highest 917/158,388 = 0.58 268/158,388 = 0.17 Both are significantly

Chapter Eleven Questions and Exercises 2. Property is only reassessed when sold, resulting in increased assessed value and property tax burden of those moving into the neighborhood compared to long-time residents. 3. TOTAL APPRAISED VALUE = 150,000,000 + 85,000,000 = 235,000,000 GROSS ASSESSED VALUE = 235,000,000 X

Chapter Twelve Questions and Exercises 1. The systems do not differ at all in terms of incentives because the actions of an individual user will not reduce that users wastewater payment. Property value determines payment in the one case; national conditions determine payment in the other. In neither

Chapter Thirteen Questions and Exercises 1. The first issue to establish is what the effect of rate changes has been on collection history and will be on the forecast period. There have been no changes influencing the actual data. For the 2007 fiscal year, however, the tax rate

Chapter Fourteen Questions and Exercises 1. Central Government: General Public Service; Defense; Economic Affairs; Social Protection 2. Subnational Government: Public Order and Safety; Housing and Community Amenities; Health; Recreation, Culture, and Religion; Education 1. Central Government: General Public Service; Defense; Economic Affairs; Social Protection 2. Subnational Government:

Chapter Fifteen Questions and Exercises 1. a. Corporate higher because municipal (usually) pays tax-excluded interest. b. Baa municipal higher because of greater risk. c. Revenue bond higher because of narrower pledge for service. d. No reason for difference. e. Twenty-year bond higher because of need to compensate

Chapter Two Questions and Exercises . 2. a. Defense outlay change: (693,586 / 294,362) 1 = 135.6 Nondefense outlay change: (658.2 / 319.7) 1 = 105.9 Defense prices: (1.1327 / 0.8147) 1 = 39.0 Nondefense prices: (1.1256 / 0.89) 1 = 26.5 Defense real:

Chapter Three Questions and Exercises 1. The Office of Management and Budget website address is http://www.whitehouse.gov/omb/ a. Historical Tables: http://www.whitehouse.gov/omb/budget/Historicals/ 2. The Budget of the United States Government is available on the OMB website at http://www.whitehouse.gov/omb/budget/Overview/ 1. The Office of Management and Budget website address is http://www.whitehouse.gov/omb/

Chapter Four Questions and Exercises No answers provided. Examination Questions 1. Which of the following statements about state budget processes is correct? a. All governors have item veto power. b. All states require biennial budgets. c. Not all states have budget messages prepared by the

Chapter Five Questions and Exercises 1. The analysis should begin with a test of ratios, shares, and trend, probably within a spreadsheet. The investigation could examine 1) how the categories have increased over time, 2) how the share of the particular categories have changed, e. g., the faculty

Chapter Six Questions and Exercises 1. A number of program constructions are possible, depending on the issues viewed as important. One construction could be: Human Resource Development Provide community service programs which promote peace and harmony; combat causes and conditions of poverty and unemployment. Health Services

Chapter Seven Questions and Exercises NOTE: Some instructors may choose to combine this chapter with chapter 14, Debt Administration, because capital budgeting is (in practice) often related to debt policy. 1. The requests as submitted will obviously shatter the ceiling on capital expenditure per year. Thus, the

Chapter Eight Questions and Exercises 1. Examination of progressivity requires comparison between tax paid and incomes of the taxpayers. The comparison between shares of tax paid and shares of the population is not helpful without knowing the shares of income. If the highest 1 percent of income earners

Chapter Nine Questions and Exercises 1. a. Blue and Jones: state liability decreases by $50 for each. b. Federal deductions increase by $100 (charitable deduction) and decrease by $50 (state income tax). Federal taxable income thus falls by $50. Taxability for Blue: $50 x .15 = $7.50 less.